UQ’s Budget Contribution Model

An Overview

VC ForumHead of Schools Workshop

September 14, 2012

Introduction

• What is the BCM?

• BCM ~ Centre to Faculty

• Structure of the BCM

• BCM Drivers

• University Funding Model – BCM Distribution

• BCM ~ Income

• BCM ~ Central Overheads

• BCM ~ Infrastructure Support Costs

UQ’s Budget Contribution Model

What is the BCM?

• Mechanism for distribution of income and allocation of costs

• Not all income

• Not all costs

• A common misconception is that the BCM is the budget

• The BCM is an input into the budget process

UQ’s Budget Contribution Model

What is the BCM?

The BCM is used to:

• Distribute CGS Block Grant income to Faculties and Institutes

• Distribute CGS Research (Secondary Gains) to Faculties and Institutes

• Allocate Central Overhead against Faculties and

Institutes

UQ’s Budget Contribution Model

What is the BCM?

The following income is not included in the BCM:

• Research Income• Trading income• Investment income• Donations, Scholarships and Bequests

The following expenditure is not included in the BCM:

• Direct costs at Faculty and Institute • Capital Expenditure from tied income sources

UQ’s Budget Contribution Model

BCM ~ Centre to Faculty

• The BCM is a conduit between the Centre and the Faculties and Institutes

• The Faculty may in turn distribute income in accordance with its own mechanism

• The Faculty may allocate costs in accordance with its own mechanism

• Portion of Central Overhead as levied upon it• Allocation of Faculty Overhead

• Running the Faculty Office• Faculty Initiatives (Strategic)

UQ’s Budget Contribution Model

Structure of the BCM

• Income

• CGS Block Grant

• Secondary Gains on Research (Research Block Grant)

• Tuition Fees

• Deductions

• Central Costs

• Infrastructure Support Costs (Repairs and Maintenance,

Insurance)

• Strategic Initiatives

• Debt Servicing

• CapitalUQ’s Budget Contribution Model

BCM Drivers

• Income distributed and costs (deductions) allocated to Faculties and Institutes on the basis of selected drivers

• The cost or deduction driver is not activity based costing.

• Has been determined as a reasonable proxy for resource usage

• The drivers are influenced by UQ’s strategic objectives. • For example, Research EFTSL and Research secondary gains are not included in

overhead calculations

UQ’s Budget Contribution Model

BCM Drivers ~ Income

UQ’s Budget Contribution Model

Item Driver

CGS Block Grant Weighted Funded EFTSL

Medical Loading Faculty of Health Science

Regional Loading Faculty of Science

Student Contribution Charge Weighted Funded EFTSL

Enhanced Student Contribution Charge 40 % WFETSL, 30 % EFTSL, 30 % SECat

T&L Performance / HEPP / ISP External Strategic Funding distributed directly by office of DVC A and SDVC

JRE / RTS 40 % RHD EFTSL, 10 % RHD Completions, 40 % Research Income, 10 % Weighted Publications (ERA)

APA Scholarships External Strategic Funding distributed directly by office of DVC R

RIBG External Strategic Funding distributed directly by office of DVC R

SRE Fellowships/Research Infrastructure support ex DVC R $4.8m Balance ~ Category 1 Income Weighted by ERA Index, 1/2 Institute Support, 1/2

Tuition Fees Direct to Faculties / Institute

BCM Drivers ~ Costs

• Drivers Include:• Funded EFTSL• Weighted Funded EFTSL• International EFTSL• Non Research EFTSL• Staff FTE• Space• Total Income (BCM)• iCEVAL

• Examples:• Library

• 50 % Staff FTE• 50 % Non Research EFTSL

• DVC I• 100 % International EFTSL

UQ’s Budget Contribution Model

BCM Drivers ~ Costs

UQ’s Budget Contribution Model

Item Drivers

Office of:

Vice Chancellor Total Income, Non Research EFTSL, Staff FTE, International EFTSL

Senior Deputy Vice Chancellor Total Income, Non Research EFTSL, Staff FTE

DVC (Academic) Non Research EFTSL, Total Income, Funded EFTSL

DVC (Research) Total Income, Non Research EFTSL, Staff FTE, International EFTSL

DVC (International) International EFTSL

DVC (External Relations) Total Income

EDO Non Research EFTSL, Staff FTE, Space, International EFTSL, Total Income

Strategic Initiatives Total Income, Funded EFTSL, Weighted Funded EFTSL, iCEVAL

Infrastructure Support Non Research EFTSL, Staff FTE, Space, International EFTSL, Total Income

Capital & Debt Servicing Non Research EFTSL, Space

BCM Drivers ~ Data Sets

UQ’s Budget Contribution Model

Category Calculation/Data Source

CGS Load Forecast data – Planning Office * Funding Index

Tuition Fees - $ and EFTSL Tuition Fee Model

JRE/RTS (4 indexes below)

Research Income HERDC – Average of preceding two years

Publications Average of preceding two years

Awards Average of preceding two years, PhD weighted by 2

RHD Load Immediate prior year actual load

Non Research EFTSL Addition of the above EFTSL streams (non research only)

Space Faculty and Institute space – latest per Reportal

FTE Census data at 31/3/2012

Total Income Total income per BCM less Research Block Grant less Enhanced Contribution Charge less Strategic Contribution

University Funding Model ~ BCM Distribution

Distributed through the BCM 2012

UQ’s Budget Contribution Model

BCM

$882 m

* CGS Block Grant $ 448 m

* Research Block Grant $ 146 m

* Tuition Fees $ 288 m

> Faculties and Institutes $ 407 m

> Central Costs (1)$ 272 m

> Strategic Funding (2) $ 83 m

>Strategic Funding (3) $ 58 m

> Debt Servicing $ 15 m

> Capital $ 47 m

Note (1) ~ Much of these incurred on behalf of total UQNote (2) ~ Discretionary Strategic Funding Note (3) ~ Direct Flow through for RIBG, SRE, APA Scholarships, HEPPNote (4) ~ In excess of 90 % of Strategic Funding flows back to Faculties and Institutes

$ 127 m (4)

Total Effective Distribution to Faculties and Institutes $ 534 m 61 % of BCM Income

Direct Revenue Distributions (2012)

UQ’s Budget Contribution Model

CGS Block Grant• C’wealth Contribution

$269m• Student Contribution

$167m

Tuition Fees• International

$258m• Domestic $

30m

Research Block Grants• JRE $

30m• RTS $

56m• SRE $

11m

Faculties

And

Institutes

Tuition Fee

Modelling

Research Performa

nce

Domestic Load

ModellingFFI

Research Block Grants

JRE $ 30mRTS $ 56m

SRE $ 11m

SRE $ 5m

APA $ 20m

RIBG$ 24m

Research Income 40%RHD Load 40%RHD Awards 10%Publications 10%

Category 1 Income moderated by ERA

Fellowships/Infrastructure

Direct to Scholars

via DVCR

Load Models

One Commonwealth-supported domestic model

Four international tuition fee models • Undergraduate• Postgraduate Coursework• Postgraduate Research• Non-award

Three domestic tuition fee models • Undergraduate• Postgraduate Coursework• Postgraduate Research

TOTAL EFSTL 2012Actual by program

CONTINUING EFTSL 2013Model

COMMMENCING 2013

Faculty Estimate

TOTAL EFTSL 2013

SCHOOL/SUBJECT AREA EFTSL SPLITS 2013

Based on Historical Patterns

FUNDING BAND/COURSE FEE RATES 2013

Actual

REVENUEBy program, faculty etc

Known Value

Modelling Process

Faculty / Institute Input

Legend

Load Models

Load Models

CONTINUING EFTSL 2013Model

Granularity: Program and Program Year

Retention: Semester on SemesterBased on 3 year history

Distribution: 1 year history (annualised)SchoolsTuition Fee Band or CGS/SCC

Band

Load Models

Granularity: SemesterProgram (International)Program and Program Year

(Dom)

COMMMENCING 2013

Faculty Estimate

Faculty Funding Index

BCM:• International tuition fees passed through ‘as

earned• Domestic load weighted by Faculty Funding

Index

Faculty Funding Index:• A multiplier that is applied to Faculties’ student

load (EFTSL) to calculate the weighted student load (WEFTSL)

• Representative of Commonwealth Funding Bands

• Moderated for scale

FFI

Faculty Funding Index

2011 Data

Commonwealth Funding Clusters

Faculty Funding Index

2011 Data

Commonwealth Funding Clusters

Faculty Funding Index

Commonwealth Funding ClustersArts 0.78

BEL 0.59

EAIT 1.24

Health 1.19

Science 1.30

SBS 0.84

2012: Variance “Theoretical” FFI to Actual FFI <.019

Questions?